NETGEAR (NASDAQ:NTGR) Stock Price Down 5.6% – Should You Sell?

NETGEAR, Inc. (NASDAQ:NTGR)’s stock price traded down 5.6% on Monday . The stock traded as low as $22.86 and last traded at $22.7940. Approximately 31,283 shares changed hands during trading, a decline of 93% from the average session volume of 465,588 shares. The stock had previously closed at $24.15.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “sell (d)” rating on shares of NETGEAR in a report on Wednesday, June 24th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, NETGEAR has an average rating of “Hold” and a consensus target price of $36.00.

NETGEAR Price Performance

The stock’s 50-day moving average price is $23.40 and its 200-day moving average price is $23.33. The company has a market cap of $601.22 million, a P/E ratio of -23.78 and a beta of 1.20.

NETGEAR (NASDAQ:NTGR) last released its quarterly earnings results on Thursday, August 6th. The communications equipment provider reported $0.16 EPS for the quarter, beating the consensus estimate of $0.01 by $0.15. NETGEAR had a negative net margin of 3.71% and a negative return on equity of 2.79%. The business had revenue of $168.56 million for the quarter, compared to the consensus estimate of $157.80 million. During the same period in the prior year, the company posted $0.06 earnings per share. NETGEAR’s revenue was down 1.2% compared to the same quarter last year. As a group, analysts expect that NETGEAR, Inc. will post -0.5 EPS for the current fiscal year.

Insider Buying and Selling at NETGEAR

In other news, Director Sarah Butterfass sold 2,704 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $26.90, for a total transaction of $72,737.60. Following the transaction, the director directly owned 38,953 shares of the company’s stock, valued at approximately $1,047,835.70. This trade represents a 6.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shravan Goli sold 3,381 shares of NETGEAR stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $26.89, for a total transaction of $90,915.09. Following the completion of the sale, the director owned 25,857 shares of the company’s stock, valued at approximately $695,294.73. The trade was a 11.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 12,085 shares of company stock worth $313,933. 3.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On NETGEAR

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Comerica Bank increased its holdings in shares of NETGEAR by 64.8% during the third quarter. Comerica Bank now owns 1,091 shares of the communications equipment provider’s stock worth $35,000 after buying an additional 429 shares in the last quarter. Cetera Investment Advisers boosted its holdings in shares of NETGEAR by 6.4% during the 1st quarter. Cetera Investment Advisers now owns 11,996 shares of the communications equipment provider’s stock valued at $262,000 after acquiring an additional 725 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in shares of NETGEAR by 35.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,475 shares of the communications equipment provider’s stock valued at $101,000 after acquiring an additional 904 shares in the last quarter. Johnson Financial Group Inc. bought a new stake in NETGEAR during the 4th quarter worth $25,000. Finally, Rhumbline Advisers grew its position in NETGEAR by 2.3% during the 2nd quarter. Rhumbline Advisers now owns 51,678 shares of the communications equipment provider’s stock worth $1,502,000 after acquiring an additional 1,140 shares during the last quarter. 82.97% of the stock is owned by institutional investors and hedge funds.

About NETGEAR

NETGEAR, Inc (NASDAQ: NTGR) is a global provider of networking solutions for consumer, business and service provider markets. The company designs, develops and markets a comprehensive portfolio of products that enable high-speed connectivity, data storage and network security for homes, small to medium-sized businesses and large enterprises.

Its product lineup includes Wi-Fi routers, mesh networking systems, cable modems, mobile broadband gateways and Ethernet switches—offered in both managed and unmanaged configurations.